COVID-19 Alert: New York City Offers Small Business Assistance

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As COVID-19 continues to negatively affect commerce around the country, there are different programs available to help businesses in need.  In addition to the Small Business Association’s recent expansion of its Economic Disaster Loan Program (click here for more information regarding that program), there is also relief available to small businesses located in New York City.

Mayor Bill de Blasio recently announced that New York City will provide relief for small businesses that have had a reduction in revenue because of Covid-19 through the NYC Small Business Continuity Fund (the “Continuity Fund”) and the NYC Employee Retention Grant Program (the “Grant Program”).

The Continuity Fund allows businesses with fewer than 100 employees that have suffered sale decreases of 25% or more to apply for zero interest loans of up to $75,000 to help mitigate losses. In order to be eligible for the Continuity Fund, a business must:

  1. Be located within the five boroughs of New York City
  2. Demonstrate that the Covid-19 outbreak caused at least a 25% decrease in revenue
  3. Employ less than 100 employees in total across all locations
  4. Demonstrate the ability to repay the loan
  5. Have no outstanding tax liens or legal judgments

The Grant Program offers a small business with less than 5 employees a grant to cover 40% of its payroll costs for up to two months to help retain employees. In order to be eligible for the Grant Program, a business must:

  1. Be located within the five boroughs of New York City
  2. Demonstrate that the Covid-19 outbreak caused at least a 25% decrease in revenue
  3. Employ 1 to 4 employees in total across all locations
  4. Have been in operation at least 6 months
  5. Have no outstanding tax liens or legal judgments

The application for both the Continuity Fund and the Grant Program can be located online here.

Please do not hesitate to reach out to your firm contact if we can be of any assistance.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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